Circular dated February 27, 2017 regarding the conditions that must be met to include interim profits/losses within the capital base of the capital adequacy standard

Cairo on: 27 February 2017

Dear Sir / Chairman of the Board of Directors of Tahiya Tiba Bank and after,

With reference to the instructions issued to banks on December 24, 2012, regarding the minimum capital adequacy standard, which included the conditions that must be met to include interim profits/(losses) within the additional basic capital of the capital base, and in this regard, the Board of Directors of the Central Bank of Egypt decided in its meeting held on February 15, 2017 the following:

"Amend paragraph 2/2/2/2/2 of the instructions issued to banks on December 24, 2012, regarding the minimum capital adequacy standard in the framework of implementing Basel decisions regarding the conditions for including quarterly interim profits/(losses), to read as follows:
Banks are allowed to include net interim profits within the capital base after a limited review by the bank's external auditor of the bank's financial statements, whereas interim losses are to be deducted without any conditions."

Please accept the highest regards,

Gamal Nagem